My parents own a rental property and I receive all of the income in 1099. I can't claim depreciation as I don't own the property. Can my parents still claim depreciation?

[justinsp125]

A property manager provides me with a 1099 and I claim all operating expenses. As owners of the property that are not receiving rental income, can my parents claim depreciation on the property?

[JulieR]

If you are neither the owner nor sub-leasing tenant of the rental the 1099-Misc should be reported in your parent's name using their tax ID numbers, not yours.  You appear to be acting as an agent for your parents for this rental.  Your parents are the ones that should be reporting the rental income and expenses, along with the depreciation on the rental.  

[justinsp125]

Hi Julie, thanks, this seems to be the best route. If they were to claim depreciation of the property without any rental income/operating expenses then I'm guessing it would look very fishy from the IRS' perspective.

[JulieR]

You are correct!